Kalpataru Limited has announced the withdrawal of its proposed demerger scheme, initially approved by its Board of Directors on June 27, 2024. The scheme aimed to transfer the Project Yoganand, located in Borivali, Mumbai, to its wholly-owned subsidiary, Kalpataru Residency Private Limited. This demerger was intended to create a Special Purpose Vehicle to facilitate funding and refinancing from potential investors. However, following the company's successful Initial Public Offering (IPO), it has demonstrated robust cash flows, alleviating the need for the demerger.

The decision to withdraw the scheme was made during a Board meeting on November 10, 2025, after careful consideration of recommendations from the Audit Committee. The company has indicated that lenders for the Project are no longer insisting on the demerger, allowing the board to reconsider its initial strategy. This pivot reflects the company's healthy financial position post-IPO, which has negated the previously perceived necessity for restructuring.

Importantly, the withdrawal of the demerger scheme will have no financial impact on either Kalpataru Limited or Kalpataru Residency Private Limited. This development underscores the company's commitment to maintaining stability and optimizing its operational structure without adversely affecting its financial health. As Kalpataru Limited continues to navigate its business strategies, this decision marks a significant step in aligning its corporate structure with its current financial capabilities.